Spotlight: FCC reverses course on taxing broadband services

 
The Federal Communications Commission (FCC) has reversed course on its proposal for a broadband Internet service tax. The FCC put forward the tax proposal to subsidize deployment of high-speed communication networks in rural areas. Currently, the funds come from fees on landline and wireless phone bills. Earlier this year, the commission proposed reforms to the current fee structure, including the tax on broadband Internet services. Recent public opposition to the proposal and an upcoming election have prompted members of the commission to disown the proposal.

The Federal Communications Commission is rapidly backpedaling from a proposal to tax broadband Internet service after a public outcry over the issue.

Democrats and Republicans at the agency are now blaming each other for pushing the idea in the first place.

Neil Grace, a spokesman for Chairman Julius Genachowski, said the commission only made the proposal “following the urging of Republican Commissioners and members of Congress."

"The Chairman remains unconvinced that including broadband is the right approach,” he said.

Robert McDowell, the only Republican on the commission when the proposal was floated earlier this year, flatly rejected that he ever supported the idea.

"I have never suggested taxing broadband Internet access," he told The Hill.

McDowell said he is skeptical that the FCC even has the legal authority to tax Internet service.